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By Debbie Gregory.

Vets First, a policy that gives preference to veteran-owned small businesses, has long been circumvented by the Department of Veterans Affairs. This is in direct defiance of orders from Congress, the Government Accountability Office (GAO) and more recently, the U.S. Supreme Court.

The program was created for Veteran-Owned Small Businesses and expanded the Service-Disabled Veteran contracting program for VA procurements. It was designed to ensure that legitimately owned and controlled VOSBs and SDVOSBs are able to compete for VA VOSB and SDVOSB set-aside and are credited by VA’s large prime contractors for subcontract plan achievements.

In Kingdomware Technologies, Inc. v. United States, the court ruled that not only was the VA disregarding VETS First, but in moving forward, the department’s “rule of two” should be used for all VA procurements.

The “rule of two” states a contracting officer of the VA, “shall award contracts on the basis of competition restricted to small business concerns owned and controlled by veterans if the contracting officer has a reasonable expectation that two or more small business concerns owned and controlled by veterans will submit offers and that the award can be made at a fair and reasonable price that offers best value to the United States.”

In order to be in compliance, the VA must:

Revise its acquisition policies and training to ensure better oversight of its contracting activities;
Improve the ability for veteran-owned small businesses to obtain Federal Supply Schedule contracts for the products the VA buys; and
Discontinue its use of contract vehicles that do not contain veteran-owned small businesses.

With more than 7,000 veteran and service-disabled veteran-owned small businesses in the U.S. that have met the Vets First criteria, there is no excuse for the not to award contracts to these businesses.

portal

By Debbie Gregory.

Many U.S. military veterans leave their service branch with skills and attributes necessary to succeed as veteran business owners.

Often times, buy more about the main roadblock for these entrepreneurs is financing their new mission: to become a veteran business owner or a service disabled veteran business owner.

If you’re looking to start or expand your business, physician there are a number of financing options available.

Start with the Department of Veterans Affairs’ Veteran Entrepreneur Portal.  The website features all things related to veteran entrepreneurship, sale including a customized wizard that will identify financing resources to support the start-up, development, or growth of veteran owned small businesses.

The U.S. Small Business Administration created the Military Reservist Economic Injury Disaster Loan to offer very low-interest loans to help reservists rebuild their businesses after serving their country. Reservists who are also business owners have to balance those two responsibilities in addition to their families. This loan is limited to businesses that the SBA determines would be unable to recover without government assistance.

Another SBA program designed to serve a particular subsection military veterans is the Service Disabled Veteran Owned Small Business Program. Veterans with a service-connected disability who are principal owners of a small business may be connected with sole-source government contracts of up to $5 million.

StreetShares offers a loan platform where investors compete in an online auction format to fund different portions of an applicant’s business loans. The investor that offers the lowest interest rate “wins” the agreement.   StreetShares’ non-profit foundation has partnered with JP Morgan Chase to commit $10,000 per month in awards to eligible reserve or active-duty service members and military veteran small business owners. Three winners are chosen monthly to split a $10,000 prize based on the merits of their business plan and the potential impact of the business on the military and veterans communities.

Non-profit Accion Veteran-Owned Business Loans provides loans up to $1 million, depending on the business’ need. Accion is often able to fund loans for veteran business owners who may not be eligible for commercial loans.

supreme

By Debbie Gregory.

The Supreme Court came down on the side of veteran business owners by finding that the Department of Veterans Affairs (VA) failed to comply with a law aimed at increasing the number of federal contracts awarded to veteran owned small businesses.

The justices sided with Kingdomware Technologies Inc., approved a service disabled veteran-owned contractor based in Maryland that said it should have been considered to provide services for a VA medical center.

The issue before the Court was whether a federal law which provides that, remedy as long as certain conditions are met, the Department of Veterans Affairs “shall award” contracts to small businesses owned by veterans applies every time the department awards contracts.  The federal government had argued that the rule left some room for discretion, but on June 16th, the Court rejected that argument.  “Shall,” the Court emphasized, was meant as a command, not an option.

The case dates back to 2012, when the VA awarded a contract for an emergency notification system that would send information to its employees, to a company that was not owned by a veteran. Kingdomware, which is owned by a U.S. Army veteran who was permanently disabled from an injury that he suffered while serving in 1991’s Operation Desert Storm, challenged the award. Kingdomware provides web, software, and technology solutions to enterprise problems.

Federal law requires the agency to use a bidding process if two or more disabled veteran-owned companies can offer service at a fair and reasonable price. But the VA argued the “rule of two” does not apply when it buys goods and services from vendors that already have contracts with the agency under a system called the Federal Supply Schedule.

Justice Clarence Thomas said the rule applies to all contract determinations.

A federal appeals court had said the VA did not have to follow the rule of two if it otherwise met the goal of awarding between 7 percent and 12 percent of all contracts to companies owned by disabled veterans. But Thomas said meeting annual benchmarks does not allow the VA to ignore a mandatory contracting rule

Veteran-owned small businesses see the ruling as a victory that gives them more opportunities to compete for contracts from the VA which, they would say, is exactly what Congress intended.

contract

By Debbie Gregory.

The Department of Veterans Affairs (VA), approved in an attempt to improve the disability examination experience for veterans, page has awarded twelve major contracts to improve the deliverability of timely disability benefits claims decisions.

The contracts, worth $6.8 billion, are being awarded for a period of 12 months with four 12-month options.

The VA awarded the contracts to VetFed Resources, Veterans Evaluation Services and QTC Medical Services through the Medical Disability Examination Program in support of the MyVA initiative.

“The goal will be to reduce the veteran’s wait times for examinations as much as possible thereby providing faster claims decisions and enhancing veterans’ experience in a positive way,” said Tom Murphy, acting principal deputy undersecretary for benefits at the VA.

The Medical Disability Examination Program will see the consolidation of the contracts under a single program management initiative, with representation in the central management group from both the Veterans Benefits Administration (VBA) and the Veterans Health Administration (VHA).

“This will be a major accomplishment for veterans going forward, not only for the efficiencies and additional oversight, but VA can now maximize the capacity of inherent capability and leverage the contract expertise and capacity as needed,” said Murphy. “The goal will be to reduce the veteran’s wait times for examinations as much as possible thereby providing faster claims decisions and enhancing Veterans’ experience in a positive way.”

Up until now, contracts for medical examinations have been managed by both administrations with varying degrees of efficiency and delivery time of exam reports, which are critical to veterans’ disability determinations supporting their compensation and pension claim.

The new program management and delivery process will also continue to ensure broad national and international coverage of medical examination requirements to meet veterans’ needs world-wide.

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